Download - Chapter 28
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Chapter 28
Working With the Tax LawSTART - Research Process - Below
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Tax Sources
Primary Sources - Code Legis Hist Regs IRS pronouncements Court decisions
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Statutory Sources
Statute Codifications - 39, 54, 86 Rev Acts part of CodeNumbering
39 54 & 86
Seidman’s
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Legis Hist H Rep (Ways & Means) S Rep (SFC) Conf Comm Rep
Code Arrangement Overall (OH) Within a Section (OH)
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Administrative Sources
Not precedent (i.e., precedent only loosely)
but substantial authority (Conc Sum 28-1) (OH)
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Regs:
Numbering, citation final / prop / temp legis/inter/proc Final + Temp = force of law prop = law brief; Judicial review
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Other IRS Issuances
Rev RulsLtr Ruls - post 84 sub auth; sanitized TD’s Anns, Notices det ltrs TAMs, GCMs AODS
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Judicial Sources
court config (Fig 28-3)(OH): cts of orig jurisd, cts of app jurisd
stare decisis: binding v. advisory precedent, or controlling v. persuasive; holding v. dicta
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Trial Courts:
cts - T.C., D.CT., U.S.Ct. Fed Cl.# judges location juries b4 payment v. refund (C S 28-2)(OH)
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Appellate Cts:
11 + D.C. + Fed Cir; (CA - 9th Cir) (Fig 28-5) (OH)
US Ct of Fed Cl (new name 10/92) - appeal to Fed Cir Ct App
T.C. appeal to one of 11 or DC - Golsen rule; no appeal small cases division (50000)
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“appeal” to USSC = writ of cert (certiorari) (discretionary)
role of app ct (review of applic law) maj, diss, concur opins - app cts and
panel at TC, US Ct Fed Cl affirm, reverse, remand-app cts
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Judicial Cites - Courts & Reporters
Case name, followed by reporters, Ct. (OH)
(1) TC (pre 43 BTA) reg cases, mem cases, small tax casesacq and NA by IRS, memorandum or
regular casesCCH, PH (now RIA) pub; only official T.C.
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(2) USDC, Ct of Fed Cl, CT App
USTC, AFTRalso F Supp, F3d,
Cl Cts (82)/Fed.Cl (92)
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(3) USSC - US, SCt, LEd, USTC, AFTR
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Research
The process (as applied to assigned problem)
issue (state it)sources (decide which)look at (sources)write (samples)
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Research = method to determine available solution to situation with tax conseqs; i.e., to find applicable law to solve problem
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Planning = consideration of alternatives, if any
Steps - ID & refine problem (state issue)
locate appropriate sources (decide what to look at & look at)
weigh validity (conflicts - IRS v. code v. courts possible)(put it together)
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Solution, includg nontax (memo: issue, law, reasoning, conclusion) (write)
communicate to t/p (t/p decision) F/U (where to approp - no duty
unless take on)
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Locating Appropriate Sources
Usually tax service 1st
CCH SFTR, RIA USTR (Prev PH Taxes)
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Also: BNA Tax Man Portfolios; RIA Tax Coord; Mertens, R&J, Bender (now in CCH)
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Careful
UpdateAnnotations - see fullPeriodicals: - Index: Goldstein, CCH, Lexis “More Useful” (OH) Careful - Reading the Code Assessing Validity - diff sources, with RA Communicating - Memo Form
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Planning
Minimization of Tax AND other business goals (social?) (deferral)
Avoidance v. EvasionJudge Learned Hand
Cant = hypocritically pious language
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The now classic words of Judge Learned Hand in Commissioner v. Newman reflect the true values a taxpayer should have:
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced extractions, not voluntary contributions. To demand more in the name of morals is mere cant.
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Computers in Tax Practice
Tax Software for returns, planning - professional (e.g., Lacerte, CCH) home use (Tax Cut, Turbo Tax)
Microcomputer spreadsheets
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Research: Lexis + Westlaw, CCH Research Network, RIA Checkpoint (on line)
Word arrangement v. legal theory/fact pattern (logic)
up to the minuteCD ROMInternet